Vietnam central bank takes steps to prevent economic recession

Aiming to stabilize the economy and prevent a recession, the State Bank of Vietnam’s governor, Nguyen Van Giau, launched February 20 an action plan which includes monetary, credit and banking solutions.

A Dong A Bank employee serving customers. The Stae Bank of Vietnam has launched an action plan to prevent recession.

He asked banks to expand credit, adopt reasonable interest rates, tackle problems in loan repayment and improve lending mechanisms to help organizations and individuals gain easier access to credit.

The Bank will have a quarterly meeting with its affiliates in provinces and cities to discuss measures to overcome difficulties facing banks. It will also expand credit to rural areas, poor households and other social targets, he said. 

The Bank will soon submit a draft decree on credit policy to the government, he added.

The Bank will coordinate with other relevant agencies to mobilize capital at home and abroad for the Social Policy Bank to expand lending to poor families and students.

The Bank also asks commercial banks to arrange capital for key projects that help government plans to stimulate the economy. Commercial banks should step up negotiations with international donors to attract more ODA and other sources.

The Bank will strengthen controls over financial instruments, exchange rates and interest rates to help encourage production and exports, stabilize macroeconomic conditions and prevent illegal speculation and trade of foreign currencies.

Banks must supply enough loans for rice exporters, says central bank

In a dispatch on February 20, the State Bank of Vietnam asked commercial banks to ensure loans to rice exporters this year. The lending and the loan guarantee must be carried out according to current regulations.  

Organizations and individuals that want bank loans for rice production and trade will enjoy low rates of interest at four percent, the Bank said. 

The Bank requires commercial banks follow up the progress of purchasing rice for export so they can tackle impediments, if any, and make loans to businesses on time.

By Ham Yen, B. Minh - Translated by Ngoc Dung

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